CAD: Technical indicators seem supportive - BBH
The Canadian dollar shrugged off disappointing retail sales, a further discount to the US on two-year money, and rose against the greenback for a third stronger weekly close in the past four weeks, notes the research team at BBH.
“The Canadian economy is cooling dramatically after a string of four-quarter advance through the middle of this year that it saw an average annual pace of 3.75%. It appears to grown less than half that pace in Q3, a quarter in which the central bank raised rates twice. The two-year discount to the US widened to 30 bp, the most since June. It was near 20 bp at the end of October. The daily technical indicators seem supportive of the Canadian dollar. Initial support for the US dollar is seen near CAD1.2660 and a break, which looks likely, could signal a move toward CAD1.2500.”